IRS Publishes Rules That Could Controversially Extend Tax Credit to Biomass

June 3, 2024 by Dan McCue
IRS Publishes Rules That Could Controversially Extend Tax Credit to Biomass
(Biomass Energy Network photo)

WASHINGTON — The Internal Revenue Service on Monday published draft regulations that environmentalists fear could open the door to federal subsidies for biomass, a form of renewable feedstock they consider as harmful as fossil fuels.

The rule published in Monday’s Federal Register would establish regulations related to the clean electricity production credit and the clean electricity investment credit established by the Inflation Reduction Act.

Those regulations would cover everything from determining the greenhouse gas emissions rates resulting from the production of electricity to determining eligibility for these credits in various circumstances. 

The proposed regulations would affect all taxpayers who produce clean electricity and claim the clean electricity production credit with respect to a facility or the clean electricity investment credit with respect to a facility or energy storage technology placed in service after 2024. 

The publication of the rule opens a public comment period that extends through Aug. 2. The IRS is encouraging those who wish to comment to submit them electronically via the Federal eRulemaking Portal at https://www.regulations.gov.

In addition, a public hearing on the proposed regulations is scheduled to be held on Aug. 12 at 10 a.m., with a second, telephone-only hearing scheduled on Aug. 13 at 10 a.m.

The agency said in a press release that requests to speak at the hearings and outlines of topics to be discussed must be received by Aug. 2. 

“If no outlines are received by Aug. 2, 2024, the public hearing will be canceled,” it said.

Those wishing to send paper submissions can do so by forwarding them to: CC:PA:01:PR (REG-119283-23), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044.

But at least one group that is already commenting publicly is taking a dim view of the proposal.

According to Heather Hillaker, a senior attorney with the Southern Environmental Law Center, providing a tax credit to bolster the biomass industry would do far more harm than good when it comes to combating climate change.

“Cutting down and burning trees for energy makes climate change worse, devastates forests, and harms local communities,” Hillaker said. “These draft regulations ask some important questions, but the biggest question I have is why the Biden administration would even consider undermining its climate goals and environmental justice efforts by subsidizing the flailing biomass industry. 

“This industry does double duty contributing to climate change by clear-cutting trees that are part of the climate solution and burning them, releasing even more carbon than coal,” she continued. “We can only deliver on the promise of the Inflation Reduction Act if we’re investing in real clean energy sources, like solar and wind power, that help address climate change and support thriving communities. 

“The Biden administration should look at the facts about this industry before it gets duped by biomass companies looking to make a buck on the backs of taxpayers, our communities and our environment,” Hillaker added.

Dan can be reached at [email protected] and @DanMcCue

A+
a-
  • biomass
  • energy tax credits
  • In The News

    Health

    Voting

    Taxes

    June 3, 2024
    by Dan McCue
    IRS Publishes Rules That Could Controversially Extend Tax Credit to Biomass

    WASHINGTON — The Internal Revenue Service on Monday published draft regulations that environmentalists fear could open the door to federal... Read More

    WASHINGTON — The Internal Revenue Service on Monday published draft regulations that environmentalists fear could open the door to federal subsidies for biomass, a form of renewable feedstock they consider as harmful as fossil fuels. The rule published in Monday’s Federal Register would establish regulations related... Read More

    May 30, 2024
    by Dan McCue
    IRS Makes Free Online Tax Filing Program Permanent

    WASHINGTON — A recently piloted platform that allows households to file their federal tax returns online and at no cost... Read More

    WASHINGTON — A recently piloted platform that allows households to file their federal tax returns online and at no cost is being made permanent, Treasury Secretary Janet Yellen announced Thursday. More than 140,000 taxpayers living in a dozen states used the Direct File system to file... Read More

    US Loosens Some Electric Vehicle Battery Rules, Potentially Making More EVs Eligible for Tax Credits

    DETROIT (AP) — The U.S. government on Friday loosened some rules governing electric vehicle tax credits, potentially making more EVs... Read More

    DETROIT (AP) — The U.S. government on Friday loosened some rules governing electric vehicle tax credits, potentially making more EVs eligible for credits of up to $7,500 but leading critics to accuse the Biden administration of helping China. The Treasury Department announced final regulations for the... Read More

    March 26, 2024
    by Dan McCue
    Sen. Blumenthal Lauds Expansion of Tax Credit for Offshore Wind Projects

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and... Read More

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and celebrate the Biden administration’s decision to expand eligibility of federal tax credits for offshore wind projects. “This tax credit has been a long time in coming,”... Read More

    House Passes Bill to Enhance Child Tax Credit, Revive Tax Breaks for Businesses

    WASHINGTON (AP) — The House accomplished something unusual Wednesday in passing with broad, bipartisan support a roughly $79 billion tax... Read More

    WASHINGTON (AP) — The House accomplished something unusual Wednesday in passing with broad, bipartisan support a roughly $79 billion tax cut package that would enhance the child tax credit for millions of lower-income families and boost three tax breaks for businesses, a combination that gives lawmakers... Read More

    December 8, 2023
    by Tom Ramstack
    Hunter Biden Indicted on Felony Charges Alleging Years of Tax Evasion

    LOS ANGELES — A Los Angeles grand jury indicted Hunter Biden on tax charges Thursday. The nine-count indictment alleges Biden... Read More

    LOS ANGELES — A Los Angeles grand jury indicted Hunter Biden on tax charges Thursday. The nine-count indictment alleges Biden failed to pay $1.4 million in taxes over four years. The Los Angeles indictment follows similar tax evasion charges this year in Delaware. Biden also is... Read More

    News From The Well
    scroll top